Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 37.36 HKD [6][7]. Core Views - The company is expected to achieve a revenue of at least 1.45 billion RMB in the first half of 2025, representing a year-on-year growth of 27%, and an adjusted net profit of at least 175 million RMB, reflecting a year-on-year increase of 33% [1][6]. - The company's business model, focusing on "Double Beauty + Double Health," is driving robust performance, with a 10% year-on-year increase in organic customer traffic for the first half of 2025 [1][2]. - The management's confidence in the company's long-term development is highlighted by a recent share buyback, which totaled 60,500 shares at an average price of approximately 29.12 HKD [3]. Summary by Sections Performance Forecast - The company has adjusted its net profit forecasts for 2025-2027 to 320 million, 369 million, and 420 million RMB respectively, with a compound annual growth rate (CAGR) of 22% [4][10]. - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 1.36, 1.57, and 1.78 RMB respectively [4][10]. Revenue Structure - The board attributes the performance improvement to the continuous refinement of the "Double Beauty + Double Health" business model, which has led to an increase in the proportion of high-margin business revenue [2][10]. Market Position - The company is positioned as a leader in the beauty and health sector, actively optimizing shareholder structure and exploring acquisition opportunities to enhance market value [4][10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 37.00 HKD [8][9]. Core Insights - The company's core competitive advantage lies in high-quality membership and comprehensive lifecycle management, with traditional beauty services as the foundation, complemented by medical beauty and sub-health services to extend customer lifecycles and enhance customer stickiness [1]. - The company is actively increasing its dividend payout ratio, optimizing its shareholder structure, and implementing long-term incentive mechanisms, which may improve liquidity and indicate potential for PE valuation recovery [1]. - The company is expected to continue industry consolidation and business acquisitions to enhance market share and strengthen economies of scale [2]. Financial Performance - The beauty and health services revenue for 2024 is projected to reach 1.443 billion RMB, with a year-on-year growth of 20.9%, and the company plans to increase the number of direct and franchise stores [2]. - Medical beauty and sub-health services revenue for 2024 is expected to reach 928 million RMB and 201 million RMB, respectively, with significant growth rates of 9.1% and 98.9% year-on-year [3]. - The company anticipates net profits for 2025, 2026, and 2027 to be 315.33 million RMB, 367.89 million RMB, and 418.15 million RMB, respectively, indicating a robust growth trajectory [5][20]. Strategic Initiatives - The company has outlined three strategic initiatives aimed at maximizing shareholder value: establishing a long-term shareholder return mechanism, attracting quality long-term institutional investors, and implementing a core management equity incentive plan [4]. - The company aims to allocate no less than 50% of annual net profit attributable to shareholders for dividends from 2025 to 2027, barring special circumstances [4]. Valuation Metrics - The report assigns a PE ratio of 25x for 2025, reflecting the company's position as a leading brand in beauty and health, with a target price of 37.00 HKD based on this valuation [5]. - The company’s cash position is strong, with nearly 1.4 billion RMB at the end of 2024, supporting its stable business development and ongoing market share enhancement [5].